With Lin Chung held by the Tsengs, and the rebels mourning the death of one of their leaders, Kao Chiu travels to Tung-Chi to gloat on his victory. The knights of Liang Shan Po begin to infiltrate the occupied village, disguised as entertainers, fortune tellers and tradesmen. Hu San-Niang uses her beauty to set two of the Tseng brothers against each other. As they fight for her affections, the heroes try to free Lin Chung. With Kao so close, the rebel knights will not have long.